LG has signed the global partnership agreement with
the ICC. It is among the four sponsors of Cricket World Cup 2003
currently being held at South Africa. It will also be the lead sponsor
of World Cup and Champions Trophy to be held from 2003 to 2007. We are
proud to be partners in such mega events, but our real pride is in being
Aapka Dost. Our mission is to let the public know that LG is sign of
caring and sharing.

Our moto is to be a responsible corporate citizen.
While we make the best efforts to maximise our business, we also make
substantial investment to improve the living conditions of the people of
the area from where we generate business. We want to share their
happiness and sorrows. We sponsors National Games in 1997 and since then
have been sponsoring other sports events. LG sponsored a Musical Show to
raise funds. When the war broke out in Afghanistan in late 2001, we made
a substantial contribution for Afghans through the legendary figure of
Pakistan, Abdul Sattar Edhi. One of our latest community services was
the arrangement of clif-lip surgeries in Karachi.

We are paying special attention to the patients.
Since it was possible to serve the all we chose Civil Hospital Karachi,
to start with. One of the key problems faced by the patients admitted in
the various wards of this hospital was, supply of quality food for them.
With the help of our partners in Pakistan arrangements have been made
for the distribution of 1,500 meals per day. To ensure distribution of
quality food, the money is not given to hospital management, a
contractor has been appointed. The staff of our local partners also
oversees quality of food to ensure timely service of food.

Prior to making any business commitment towards
Pakistan, LG Electronics studied the local market extensively — market
size and potential growth, product preference, prices and the level of
customer support. Pakistan was found to have very large demand growth
rate but inadequate customer support. It was also found that local
manufacturers were facing tough competition due to large scale smuggling
of televisions, mainly due to high cost of locally assembled products.
LG having strongly belief in its quality and price competitiveness took
the challenge to beat the competition, particularly the smuggled
products.

LG initially appointed a local distributor to sell
CBUs and managed to sell over 35,000 televisions in six months. The
market feedback was encouraging and LG entered into an agreement to the
assembly of televisions in Pakistan. It managed to sell over 220,000
televisions during the first year of commencement of assembly in
Pakistan. It emerged to enjoy the largest market share. The customer
preferred LG mainly for a number of reasons, mainly quality, price and
after sales support. As the customers got quality product at competitive
prices that were well supported by after sales services, quantum of
smuggling is gradually reducing. We believe that we are capable of
providing the latest technology at affordable price.

I have no hesitation in saying that LG could have not
acquired such a market share without the support of its local partners,
Allied Electronics, the Government of Pakistan (GoP) and above all
without the dedicated efforts of people working at the assembly plant.
The GoP policy to protect the local industries, reduction of import
duties on CKD kits and components, enables the local assemblers to beat
the competition. As the assemblers attain higher capacity utilisation
they are able to offer products at competitive prices.

LG has an ambitious programme to undertake assembly
of more products in Pakistan. We encourage and support the local partner
to undertake assembly of all the fast moving models of televisions.
After taking into account the fast growth of information technology, we
want to assemble monitors in Pakistan. We also have a plan to start
assembling of split type airconditioners in Pakistan. LG's local partner
has started export of locally assembled television from Pakistan, with
the first shipment to Afghanistan.

As stated earlier, one of the factors contributing to
LG's success in Pakistan is the superior level of customer support. LG's
over 40 service centres are already operating in major cities. It also
has over 25 authorised service centres in small cities. LG offers
convenience because the field staff handles 80 to 85 per cent
complaints. Only the remaining complaints require brining of sets to
repair shops. We have fully computerised service facility and as soon as
the compliant is lodged and till the job is over, its status is been
monitored. As soon as the job is completed, the customer gets a
confirmation, we call it 'happy call'.